500 million checks are forged annually* In simple terms 1,360,000 checks per day

Transcription

1 The Check Fraud Problem 500 million checks are forged annually* In simple terms 1,360,000 checks per day (including weekends and holidays) *Source: Ernst & Young 1

2 What Can We Do About It? It is matter of Checks & Balances 2

3 The Color of Money MICROPRINTING FREEDOM SYMBOLS BACKGROUND COLOR WATERMARK SECURITY THREAD 3

4 The Color of Money COLOR/DESIGN MICROPRINTING LOW-VISION FEATURE 4

5 Problem Solved? Not Quite!!! 5

6 6 The uninformed public is our best customer

7 7 Checks & Balances Begins By Building a Strong Document

8 Building a secure document Counterfeit Deterrents Paper Watermark BLEACH Fabric Cleaners POLAR SOLVENTS Nail Polish Remover Rubbing Alcohol NON POLAR SOLVENTS Paint Thinners Forgery Deterrents Paper Chemical Sensitivity Toner Retention ACIDS Vinegar ALKALIS Window Cleaners Drain Cleaners 8

9 Building a secure document Counterfeit Deterrents Paper Conservator Watermark Printed Hidden Word WARNING! DO NOT ACCEPT THIS CHECK UNLESS YOU CAN SEE A TRUE WATERMARK WHEN HOLDING THE CHECK TO THE LIGHT Forgery Deterrents Paper Chemical Sensitivity Toner Retention Printed Warning Band VOID VOID VOID VOID VOID VOID VOID VOID VOID 9

10 Building a secure document Counterfeit Deterrents Paper Conservator Watermark Printed SecureScan Forgery Deterrents Paper Chemical Sensitivity Toner Retention Printed Warning Band Thermochromic Ink 10

11 Building a secure document Thermochromic Ink Ink color will disappear when heat is applied. Returns to original color as it cools. 11

12 Building a secure document Counterfeit Deterrents Paper Conservator Watermark Printed SecureScan Forgery Deterrents Paper Chemical Sensitivity Toner Retention Printed Warning Band Thermochromic Ink 12

13 RED FROM THIS SIDE Building a secure document Fraud Deterrent Background Bleed Through Control Number Watermark Paper Warning Band THIS IS WATERMARK PAPER AND CONTAINS VISIBLE FIBERS. DO NOT ACCEPT WITHOUT NOTING WATERMARK. HOLD TO LIGHT TO VERIFY WATERMARK. 13

14 14 Checks & Balances Limits Your Exposure Through Strong Controls

15 Secure more than your documents Security by Design Negotiable instruments should have a minimum of 8 security features Negotiable instruments must have a control number Treasury must Sign Off on all Negotiable Instrument Orders Negotiable Instruments must be Reviewed for Effectiveness, Yearly 15

16 Secure more than your documents It s a Match!! Payee Match Positive Pay insures that a check is only paid once. 16

17 Secure more than your documents Be Prepared!! Reconcile all accounts regularly, ASSUMING NOTHING Have a plan in place on how to handle a forgery When fraud occurs, investigate until ROOT CAUSE is determined 17